Tesla and SpaceX to build $16.8B Texas chip fab powered by natural gas

Tesla and SpaceX confirmed their Terafab semiconductor megafactory will be built in Grimes County, Texas with a first-phase cost of $16.8 billion, but will rely on natural gas power plants rather than Tesla solar to meet its energy needs.

First covered Aug 6, 2026 · 9:12 AM PT · 2 articles

Tesla and SpaceX to build $16.8B Texas chip fab powered by natural gas — Image via electrek.co

Coverage

3h TechCrunch Climate SpaceX’s Terafab will rely on natural gas power plants, not Tesla solar panels — SpaceX and Tesla are building a massive semiconductor fab in Texas that will depend on natural gas power plants, not Tesla solar panels.

1d Electrek Tesla, SpaceX confirm ‘Terafab’ chip fab site — $16.8B first phase — Tesla and SpaceX have confirmed where they’ll build Terafab, the semiconductor megafactory Elon Musk first teased in March.

Primary sources

ftc.gov 20261350: Elon Musk; CF APR Super Holdings LLC

Related coverage

1d Electrek Tesla starts Megapack 3 production with 28% more energy per unit

More coverage from around the web

teslanorth.com SpaceX, Tesla Break Ground on Massive $16.8B Terafab in Texas | TeslaNorth.com

interestingengineering.com SpaceX, Tesla plan $16.8B Texas chip facility to cut foreign reliance

gov.texas.gov Governor Abbott Announces SpaceX Expansion In Grimes County | Office of the Texas Governor | Greg Abbott

qz.com Tesla and SpaceX to invest $16.8B in Terafab chip factory in Texas

benzinga.com SpaceX, Tesla Confirm Terafab Site as Chip Demand Outruns Global Supply - Tesla (NASDAQ:TSLA), SpaceX (NA - Benzinga

Appeared in: 2026-08-07 (#13)

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